Green Minerals (GEM) Q4 2024 earnings summary

Executive summary

• Underlying EBITDA loss of NOK 2.6 million for the quarter, excluding a NOK 2.4 million non-cash gain from the share incentive program, aligning with previous guidance.

• Cash at quarter-end was slightly above NOK 3 million, down from NOK 11.7 million year-over-year.

• Norway's opening for deep-sea mining in January 2024 positions the company as one of two globally listed DSM players, with ambitions to secure a license and deliver 1.5Mt of ore annually via an asset-light partnership model.

• Significant 12-month delay in Norway’s first deep sea mining license round due to political negotiations, despite strong parliamentary support.

• Company responded with deep cost cuts, in-kind commitments, and a guaranteed rights issue to extend runway and maintain optionality.

Financial highlights

• Q4 underlying EBITDA was NOK -2.6 million, excluding a NOK 2.4 million non-cash gain.

• Cash position at quarter-end above NOK 3 million, compared to NOK 11.7 million last year.

• Annual run rate cost reduced to NOK 10 million, with an 80% cost reduction over three years.

• Rights issue guaranteed by major shareholders, with a maximum of EUR 1 million to be raised.

• Net loss for Q4 2024 was NOK -272,000; full-year net loss was NOK -15,067,000.

Outlook and guidance

• License awards are expected in Q2 2026, with first ore from pilot production anticipated in 2030.

• Company expects to deliver on ambitions for license holdership within a year and pilot production by 2030.

• Steady-state EBITDA projected at $150–$200 million from one production system at current copper prices.

• Pre-tax cash return on investment projected at over 300% per annum, with payback in under four months.

• Exploration data valued at over $65 million will be available at zero cost by 2025, supporting license application readiness.